United Package Liquors (UPL) has been expanding quickly. In the past six years, the Indianapolis-based chain has nearly doubled in size from 13 to 23 stores and receives at least two or three phone calls a month from other owners wanting to sell their stores to the company.
Founded in 1964 by Leon Riggs, the chain grew over the years from a single store to a dozen. At the same time, Riggs also started Lor Corporation, a successful commercial real estate development company.
In 2002, Riggs made the decision to re-focus on providing customers with a wider variety of quality products, continued excellent customer service, and providing an overall pleasant shopping experience.
Shortly after, Riggs promoted Brad Rider from general manager to president and ceo of UPL to focus on injecting new life into the chain. UPL now stands out as one of the premiere beverage retailers in the area. While many factors contribute to the company’s growth and success, four are lynchpins: location, location, location and giving back.
“One of the smartest decisions Leon made early on was to research and select strategic locations in the city,” said Rider. “Now we stand out due to our consistent out-of-the-box marketing and events.”
Marketing at UPL, though, has a different twist. In addition to traditional programs designed to sell packaged goods, many of the company’s marketing efforts also focus on packaging hope for the area’s underprivileged and needy. It’s proving to be a winning combination.
UPL is actually several chains in one. As the company acquires new stores and grows, it has also absorbed other concepts and store names. The core concept, United Package Liquors, comprises the bulk of stores in the chain. Other stores in the company include two Toddy Shoppe Discount Liquor stores and one Hamilton Beverage Fine Wines & Spirits store.
A few years ago, the chain embarked on a new store concept called United Fine Wines & Spirits. These stores are designed with a modern look. They are beautiful, well lit, and very inviting using an earthy color scheme and track lighting instead of the institutional fluorescent lights found in many package liquor stores. Two of the stores also have walk-in, temperature-controlled wine cellars.
The United Fine Wines & Spirits stores offers a broader selection of high-end wines and spirits and continue to carry many of the 10,000 SKUs already in the chain.
“When we decided to move forward with the concept, we thought downtown Indianapolis would be the ideal location due to our target audience, but the area neighborhood ultimately didn’t want the store, so we decided to transfer the permit to the north side of the city,” said Rider.
The store concept was so well received that UPL has since converted three other locations into United Fine Wines & Spirits stores.
More In Common Than Looks
During the chain’s recent expansion, several other stores were also remodeled to give them a fresher, more updated look to make them more inviting. All the remodels took visual and design cues from the new United Fine Wines & Spirits store concept. Stores waiting to be remodeled have received new signage for a more uniform look. The idea is that while stores may cater to individual neighborhoods and have different store names, they all share a common look, from décor to store colors and even typography on logos and signage.
An important consideration in the development of the new concept, as well as all the remodels, was keeping the appearance of the stores bright, clean and friendly.
“One of the first things I accomplished after I was hired was to put policies in place which included improving the overall store appearance. Some of these policies included not allowing signs in the windows or banners to be hung from the ceiling. The stores are really bright and beautiful, and I wanted customers to really enjoy their experience. Security is always a concern, and I wanted law enforcement to be able to see inside the stores for obvious safety concerns,” said Rider.
All POS material except that provided by vendors has the UPL or store logo on it. The chain doesn’t allow static clings on cooler doors, instead putting wobblers are placed on cooler shelves with a price tag and store logo. Exclusive products also are merchandised up front in displays with branded UPL signage.
“We want all the stores to have inviting displays,” said Marcia Jones, district manager, “but each store is a little different. Each has its own personality, so a store that sells a lot of Jim Beam, for example, may merchandise it more or build bigger displays.”
The chain has close partnerships with local distributors. Due to these partnerships, distributors help build displays and provide merchandising materials while complying with the company’s standards, which provides a consistent look across the chain.
“UPL used to hold display contests among the stores, for example, to reward managers for creativity. The contests became old and stale, and the displays weren’t consistent,” Rider said.
Now beer wholesalers build uniform displays in all stores and make sure the displays change with the seasons and special promotions. Local distributors do cooler re-sets for the chain. When they have an idea for a new set, they print schematics and review it with district manager Jones. Once approved, distributors will take product out of the cooler stock, thoroughly clean the inside, and reorganize the shelf sets. The chain’s largest store has 22 cooler doors.
Stores range in size from 2,500 up to 6,000 square feet. The chain stocks many of the 2,500 spirits, 4,000 wines and 2,000 beers in a central warehouse. Across the chain, sales are split about 45% beer, 30% spirits, 20% wine and 5% miscellaneous.
Each store naturally has its own mix, depending on demographics of the area. Demonstrating this fact is that wine sales in some stores may be as high as 50% while in others beer may account for as much as 70% of average sales.
The Right Mix
Store managers have some latitude when it comes to product mix, stocking what appeals to their customers. Inventory is managed by the corporate office. Spirits orders are generated by computer, delivered by wholesalers to the company’s warehouse. The company then distributes products to the stores based on their needs.
Wine is handled a little differently. Eight store managers and the wine buyer comprise a fine wine committee that meets regularly to suggest wine selections. Bulk wine orders, however, are generated much like spirits orders.
The chain has recently started going directly to wineries to find hand-picked products it can offer as exclusives through its stores. Called Cellars Selection, these wines are marked down 15%. Some stores offer a Penny Wine promotion that’s quickly spreading through the chain. Basically, the wine buyer purchases wines at a discount from local distributors and offers a buy one bottle at the regular price and get the second for only a penny promotion.
The chain employs about 150 people in the stores, but corporate staff is lean at 10. In addition to Rider and owner Riggs, there are three district managers who oversee store managers, the warehouse manager, a marketing and events manager, a human resources manager, and support staff. Wearing multiple hats isn’t unusual. Several of the store managers are responsible for training new hires.
Staff education is one key component to the company’s marketing and growth strategy. The process begins with hiring qualified job applicants. To help reduce turnover and attract effective employees, the chain uses a lengthy application process. Along with filling out an application form, candidates must pass a variety of tests, including a cognitive test. Their scores are measured against a benchmark among current employees.
The human resources manager then reviews the results with the district managers. The district managers will then take qualified applicants to store managers to set up interviews. If managers like what they see, applicants undergo a thorough background check and take a psychological test in preparation for the next step in the interview process.
Approved applicants are then sent to one of the five training stores to learn the basics. The training program includes policies and procedures, server training, register training and more. Typically, new employees finish the training over the course of three days, but it can take as long as two weeks for part-time or seasonal employees to complete the course.
Class In Session
Once on board, employees have a range of educational opportunities to choose from to improve their knowledge and skills. In addition to regular bi-weekly staff meetings and weekly tastings in the stores, employees receive news about products and the alcohol beverage industry from an internal newsletter called the Eagle Source.
UPL recently kicked off its online UPL Beverage University in partnership with Glazers, the wine and spirits wholesaler based in Addison, TX. The nine-hour course presents basics in wine, spirits and beer that employees can study and learn at their own pace. Employees who pass the course receive a Certified Beverage Specialist patch embroidered on their UPL branded shirts.
Olinger Distributing Company, the local Glazers branch, offers continuing education courses once or twice a year, giving employees an opportunity to brush up and add to their knowledge base.
Customer education is another prong in UPL’s business strategy, and the beer and wine schools have been a monthly fixture at UPL for some time. The schools move from location to location, usually stores, but sometimes outside venues, and generally last a couple of hours. The company brings in outside experts such as winemakers, brewers and industry professionals to teach a subject and conduct tastings. The sessions are both educational and fun, and stores often tie these schools to new product introductions. For example, a recent sampling included a tequila infusion demonstration showing customers how to flavor spirits with fruit.
The chain also holds formal tasting events to promote certain products and further educate customers. Recent examples include a Scotch dinner where attendees sampled flights of Scotch while enjoying tasty bites of food prepared by a local country club chef. The chain also holds winemaker dinners, blind cabernet tastings, and private wine tastings at various locations in the city.
Events are posted online on the company website, localevents.com, and included in bi-weekly e-mail blasts. Upcoming dinners, schools, tastings and other news also are highlighted in a bi-monthly print newsletter called Booze News and in-store flyers.
UPL advertises consistently in the traditional forms of media including newspapers, food and beverage magazines, radio advertising, etc.
While traditional marketing efforts keep UPL’s name and product selection in the limelight, the chain’s other marketing efforts have far deeper implications for the company and the community.
Giving Back
For years, Riggs put donation jars in the stores and offered to match whatever money customers put in, giving the money to local charities. Individual stores have always played a responsible role in their communities. Employees, too, kept asking how they could make a bigger impact on the communities they live and work in. The company’s legal counsel suggested that UPL create a non-profit organization to facilitate its charitable giving. Four years ago, the United Hope foundation was born.
The foundation’s mission is to assist non-profit charities in the area that provide services and help to families and individuals in financial need. Riggs’ philosophy, and that of his two companies, Lor Corp. and UPL, has always been, “You are never too tall to reach out and help someone in need.” The foundation gave Riggs, the companies, and all the employees a vehicle through which they could put their energy and talents to work.
The foundation contributed more than $30,000 to local charities its first year in existence. The following year, UPL and the foundation developed their Annual Greens for Hope Golf Classic. An all-industry event, the golf outing invites 50 foursomes to play a fun tournament on one of two adjacent 18-hole golf courses.
Wholesalers, wineries, brewers and others are solicited as sponsors of different aspects of the event such as the dinner, driving range, golf carts, and so forth. To help raise more money, the banquet features a raffle and silent auction. The planning committee, which consists of community volunteers and UPL employees, procures the raffle and auction prizes.
“It isn’t hard to find volunteers because it’s such a fun event,” said Jill Bennett, UPL’s marketing and events manager. Bennett, who helped UPL organize its first golf classic when she worked for Second Helpings, a food rescue, job training, hunger relief organization, was later hired to run all of UPL’s marketing. With Bennett’s background, it’s no wonder that many of the chain’s programs have a charitable bent.
Other big events the company has organized and/or sponsored include: An Evening in the Garden; WFYI Wine Fest; Red, Whites & Blues; the Indianapolis Air Show; Festiv-Ale; and Indy’s Wine & Brew Fest.
At the Annual WFYI Wine Fest, UPL works with all of the local distributors, wineries, etc., to provide a selection of wines along with wine order forms to help raise funds for the local PBS station. Patrons have the ability to place orders that evening for pickup at a later date, and 10% of all wine sales benefit the charity.
Similarly, at the Indianapolis Air Show, which features a variety of aircraft and performances by the Blue Angels, UPL sells beer and wine on the flight line, with a portion of the sales going to Riley Hospital for Children in Indianapolis. Last year, UPL donated more than $30,000 in beer and wine sales.
UPL’s own Indy’s Wine & Brew Fest gives customers a chance to sample as many as 150 wines and beers all in one evening. Held in the Kellersall Ballroom at The Rathskeller restaurant in downtown Indy’s historic Athenaeum building, the event features table displays sponsored by distributors, wineries and microbreweries. The restaurant donates the facility and most of the food cost.
What’s Next?
This year, UPL has developed a third major event in addition to the golf classic and the Wine & Brew Fest. Scheduled in November right before the holidays is the chain’s first Taste of Seasons. UPL has booked the renowned Ritz Charles banquet facility in Carmel, about 10 miles north of the city, and is inviting the area’s top restaurant chefs to prepare menu items that UPL will pair with high-end wines, beers and spirits. No other food and beverage festival in the area features all three, so it’s truly a unique event.
There will be a separate lounge for spirits sampling and a brewpub-type area for sampling microbrews and specialty beers in addition to a main wine-and-food pairing area. The event also will feature a raffle and silent auction.
Not only is the event expected to generate a lot of money for charity, but coming right before the holidays it should give patrons excellent gift-giving ideas and an opportunity for UPL to showcase alcohol gift sets.
UPL’s United Hope Foundation has donated well in excess of $175,000 since its inception in 2005. But the spirit of giving is infectious throughout the chain. Hamilton Beverage Fine Wines & Spirits, for example, recently supported a promotion that helped the Carmel Dad’s Club raise funds for Lutheran Disability Ministries. The chain worked with Beringer Vineyards recently on a promotion in which the winery donated a percentage of each case sold to a local charity. Store managers were given the opportunity to pick local charities in the neighborhoods they wanted to work with and support. The foundation has really taken on a life of its own, Rider said. This is due to employees, distributors, and community all coming together to help those in need in Central Indiana.
“All the events and community goodwill have paid off. In the past few years, sales have increased up to 10% annually on a same-store comparison. And, of course, the stores and the company foundation have fostered good relations with neighbors and helped many worthy causes,” said Rider.
While continued growth is always a goal, the chain’s focus now is on creating top-of-mind awareness and improving services so the stores continue to stand out in customers’ minds, according to Rider. The company is in the process of revamping its website and expects to unveil the new look this month.
One thing UPL is sure to continue is its strong tradition of selling not just packaged goods in a clean, bright friendly environment, and offering excellent customer service, but providing hope to those in need.
-Michael Sherer